There are favourable ratings for local businesses. F&B businesses that improve Google My Business star ratings from 3.5 to 3.7 may see significant increases in conversions (customer contacting and/or visiting the business). But rating 3.7 don’t offer the best conversions, which will it be?
These findings come from a Uberall study comparing data from 64,000 companies in the first half of 2018 and the first half of 2019.
Conversions captured in the study represent a combination of phone calls, driving directions, and site clicks.
Conversion Rates and Conversion Growth
Overall, conversion rates peaked when companies reached 4.9 stars, but it was when companies improved from 3.5 stars in a given year to 3.7 stars the following year that conversion growth increased by almost 120 %, the largest percentage jump compared to any star rating.
More stars are not always better
At 5 stars, business conversion rates have dropped. An increase in star rating from 3.7 to 4.4 can increase business location conversion rates by 80%!
On average, small and medium-sized companies had a higher star rating than large companies in all industries.
Conclusion for Restaurant, Coffe Shop, Takeout/Takeaway and other F&B Owners
“By focusing on star ratings and response rates, brands can greatly affect their overall conversion rates,” said Norman Rohr, Uberall vice president of marketing. “Consumers who are involved with the brand are also extremely likely to visit a store within 24 hours, so a 25% increase in conversions can also mean a 25% increase in-store traffic every day.”
For Restaurant, Coffe Shop, Takeout/Takeaway and other F&Bs, the results suggest that businesses should prioritize good star ratings beyond the 3.7 mark to benefit from peak conversion growth.
To take advantage of the largest increase in conversion rate, companies should strive to reach at least 4.4 stars. There is less competition above this rating, but the conversion rate increases a lot. And answering the initial question, the ideal rating is between 4.4 to 4.9.